Paxton Jeffrey Anderson, 40, and Joseph John Plany, 39, have been convicted after a 12-day trial of 25 counts and 22 counts, respectively, of bank fraud and one count each of conspiracy to commit bank fraud for their participation in a mortgage fraud scheme.
As previously reported by Mortgage Fraud Blog, Anderson was the owner of Dynamite Custom Homes from 2002 through 2007. Anderson worked as a home builder through Dynamite Custom Homes, and later through J. R. Custom Homes.
Plany was employed from October 2004 through 2007, as the Certified Public Accountant for Dynamite Custom Homes, J. R. Custom Homes, and other various business entities.
From December 30, 2001 to June 2009, Anderson and Plany devised a scheme to defraud lenders and to obtain money from lenders by means of false and fraudulent pretenses, representations, and promises and by intentional concealment and omission of material facts.
Anderson, Plany and others devised a scheme to purchase real properties that misrepresented material information including the buyer’s assets, income, liabilities, sources of indented down-payment, and intent to occupy the improved property as a primary residence. It was also part of the scheme to inflate and falsify invoices, misrepresent to the lender that work was completed, and to forge construction draw requests to obtain funds from lenders.
Anderson, Plany and others conspired with each other to engage in an ongoing conspiracy to obtain real estate based on loan applications misrepresenting material information to the lender and misrepresenting that draw requests were used for construction expenses when in fact the draws were used for personal expenses of Anderson. The purpose of the conspiracy was to use an appraisal that substantially inflated the fair market value of the property in order to obtain a higher loan amount based on the appraisal. To use friends, family members and others to purchase properties, in some cases multiple properties, for each buyer